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Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400.
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Prepare a selling and administrative expenses budget for January.
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Prepare a budgeted income statement for January.
PR 22-3A Budgeted income statement and supporting budgets Obj. 4 The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: Excel a. Estimated sales for January: Birdhouse Bird feeder. 6,000 units at $55 per unit 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood Plastic. 220 ft. 250 lb. Finished products: Birdhouse Bird feeder... 300 units at $23 per unit 240 units at $34 per unit c. Desired inventories at January 31: Direct materials: Wood Plastic... 180 ft. 210 lb. Finished products: + Birdhouse 340 units at $23 per unit Bird feeder....... 200 units at $34 per unit d. Direct materials used in production: In manufacture of Birdhouse: Wood ........ 0.80 ft.per unit of product Plastic. 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood ........... 1.20 ft. per unit of product Plastic 0.75 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood ....... $8.00 per ft. Plastic.. $1.20 per lb. f. Direct labor requirements: Birdhouse: Fabrication Department Assembly Department... Bird Feeder: Fabrication Department Assembly Department... 0.20 hr. at $15 per hr 0.30 hr. at $12 per hr. 0.40 hr. at $15 per hr. 0.35 hr. at $12 per hr. 09 Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment $80,000 25,000 Power and light Insurance and property tax $8,000 2,000 h. Estimated operating expenses for January: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $90,000 20,000 18,000 800 500 200 5,000 250 450 i. Estimated other income and expense for January: Interest revenue Interest expense $300 224 j. Estimated tax rate: 30% Instructions
